Gambits, or ploys, are tactics that prospects and buyers might use to try to get a better deal from salespeople. Recognizing them when you see them is the first step in protecting your interests and getting to a win-win scenario with your clients. The second step involves knowing how to counteract these gambits when they are played against you.
Las month we studied the first six. Here is the second set of six:
Gambit #7: The "Fait Accompli." You have a deal structured and agreed to, and then at the last moment the buyer makes a change to the price or terms and modifies the final document – signs it and sends it to you as a "done deal."
It works because the salesperson has worked hard on the deal and is holding an executed contract, and is tempted to take it and overlook the last minute, un-negotiated change. The problem is that this kind of buyer is an unethical client, and will continue to play unethical games with you as long as you let them. Don't take the contract! This deal is not done. Ignore the signed document and get the buyer back to the negotiating table, with the subtle message that you don't do business that way.
Gambit #8: "Best and Final Offer (BAFO)." Usually seen in competitive, complex sales cycle deals, this is where the prospect tells you that you have made the cut to the finals, and you can win if you sharpen your pencil and come back with your best and final offer.
This is a slap in the face, as it ignores your right to make a decent profit margin and assumes you've padded your original proposal. The best way to handle this is to not let it get to this point. Engage your prospect in conversation that uncovers the issues that your competition can't address, but you can!
Gambit #9: Stonewalling. Some prospects are fully communicative and engaged in good faith negotiations with you, then all of a sudden they stop returning calls and emails, and play hard to get. This works because the salesperson is perplexed as to why the communication has stopped just when they thought a deal was imminent. The salesperson is tempted to sweeten the deal with some kind of concession just to get the talks re-started.
Don't give in! Send a good-natured fax that suggests you might close the file since they obviously have changed their mind. This tactic takes a lot of guts to execute, but it is extremely effective in breaking the silence and getting the prospect to tell you exactly where you stand.
Gambit #10: Escalation. The prospect hints that if you give them concessions on this deal, there is another – usually larger – deal coming behind it for which you would have the inside track. This ploy plays on the salesperson's greed (to get both deals) and gullibility (thinking the prospect is being straight with you). Be smart and get both deals locked up in writing at the same time before giving any concessions on only the first deal.
Gambit #11: Nibbling. The prospect starts asking for small concessions early and often, until before you know it, you've conceded all of your margin and have no leverage at all. It works because small concessions are easy to give up, especially when it sounds like buying signals when the prospect keeps asking for them. Don't give away anything early. Instead, let your prospect know that you are unopposed to dealing in good faith if it makes sense, but you are not desperate and your solutions have value enough to offset the investment the prospect would be making.
Gambit #12: Changing The Rules. Usually not a real ploy, this one is most often a real situation that is an unfortunate development and very difficult with which to deal. An example would be where your main contact at the prospect organization drops out, and someone else takes their place. This new person has not been involved to date, but wants to pick up the negotiations at the place the other person left off, and wants more concessions.
It is effective because you have empathy for the new contact, you are invested in time and resource in the deal, and you are unwilling to start over at list price. Your best bet is just that, however, you should be willing to go back to "square one' and start negotiations from the very beginning – after you develop a relationship with the new contact and completely explore the issues with him or her.
Prospects have different motives for their negotiating ploys, and few salespeople are up to the task to protect their own best interests. Most often, we "give in" in order to get the deal done. Knowing the ploys and practicing how to deal with them can get you the deal while keeping your margins – and your commission check – right where they should be.
Al Simon is president of Simon, Inc., an authorized licensee of Sandler Training. He can be reached at www.SimonSaysSell.net.
